Showing papers by "Jeffrey Bennett published in 2005"

Australasian environmental economics: contributions, conflicts and 'cop-outs' ∗

Abstract: Australian and New Zealand environmental economists have played a significant role in the development of concepts and their application across three fields within their subdiscipline: non-market valuation, institutional economics and bioeconomic modelling. These contributions have been spurred on by debates within and outside the discipline. Much of the controversy has centred on the validity of valuations generated through the application of stated preference methods such as contingent valuation. Suggestions to overcome some shortcomings in the work of environmental economists include the commissioning of a sequence of non-market valuation studies to fill existing gaps to improve the potential for benefit transfer. 1. Context The emergence of environmental economics in Australia and New Zealand has reflected growing public interest in and heightened political debate over environmental issues including the flooding of Lake Pedder in Tasmania, logging of old growth forests, salinisation of farmland and waterways and the restoration of environmental river flows. To begin a consideration of Australasian environmental economics, two definitional matters require resolution: first, what is environmental economics as distinct from other areas of the economics discipline and second, what distinguishes Australian and New Zealand environmental economics from international developments? Environmental economics can be defined very broadly. The approach taken in this paper is to consider environmental economics in a more restricted way by excluding developments in the economics of natural resources, apart from when the analysis involves trade-offs between the exploitation of natural resources and impacts on the ecosystem. For instance, the consideration of the optimal rate of extraction of a nonrenewable resource of a mineral or the optimal rotation length of a plantation forest is considered in this paper to be outside the realm of environmental economics (and part of resource economics) until such considerations involve environmental externalities

Accounting for afforestation externalities: a comparison of contingent valuation and choice modelling

Abstract: One issue faced by those using social cost–benefit analysis to make decisions on forestation is how to account for environmental externalities. This paper compares two different valuation techniques, contingent valuation and choice modelling. Both approaches were applied to an afforestation programme in the northeast of Spain, and were found to yield similar estimates of welfare change when the utility function was fully specified. However, when elements of the utility function were omitted, significant differences were detected in the welfare estimates derived from the two techniques. Choice modelling is the method recommended for use in policy evaluation contexts, such as cost–benefit analysis applications, because of the additional valuation information it provides. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.

Using a choice modelling approach for customer service standards in urban water

Abstract: A series of reforms in the water industry in Australia has created a demand from the industry and regulators for objective methodologies to evaluate incremental changes in the customer service standards. In this paper, the use of choice modeling for estimating implicit prices associated with urban water supply attributes is explored. Results from multinomial logit (MNL) and random parameters logit (RPL) models show that increases in annual water bills and the frequency of future interruptions were the most important attributes. Implicit price confidence intervals based on the best models suggest that people are willing to pay positive amounts to achieve a water supply that is less frequently interrupted. The provision of alternative water supplies during an interruption and notification of the interruption were found to be unimportant to respondents. Choice modeling proved to be a useful technique and provided the industry and regulators with additional information for standard setting.

The evolution of markets for water. Theory and practice in Australia.

Abstract: "This book presents a detailed picture of the evolutionary processes at work in water markets with a particular focus on theory and practice in Australia. Policymakers are striving to strike a balance between the pros and cons of a property rights/market based approach to the allocation of water resources, as opposed to an approach that centres on government regulation. The current movement in Australia is toward the use of markets, and numerous reforms are either underway or under consideration in that direction. This provides an ideal opportunity to observe the factors at play in determining the balance and hence the mix of policy instruments at work. The distinguished contributors offer a range of perspectives - economic, legal, environmental - and combine conceptual analysis with evidence from real policy decisions." "Policymakers and governmental advisers will find this book timely and extremely relevant to making decisions on what is arguably the world's most critical natural resource. The Evolution of Markets for Water will also be of great interest to academics and students with an interest in natural resource economics, law and management."--BOOK JACKET.

An economic valuation of wetlands in Vietnam’s Mekong Delta : a case study of direct use values in Camau province

Abstract: Contiene: 1. Introduction -- 2. Theoretical framework -- 3. Hypothesis and methodology -- 4. Direct use values of wetlands in Camau -- 5. Discussion and conclusion

The Evolution of Markets for water

Abstract: This book presents a detailed picture of the evolutionary processes at work in water markets with a particular focus on theory and practice in Australia. Policymakers are striving to strike a balance between the pros and cons of a property rights/market based approach to the allocation of water resources, as opposed to an approach that centres on government regulation. The current movement in Australia is toward the use of markets, and numerous reforms are either underway or under consideration in that direction. This provides an ideal opportunity to observe the factors at play in determining the balance and hence the mix of policy instruments at work. The distinguished contributors offer a range of perspectives – economic, legal, environmental – and combine conceptual analysis with evidence from real policy decisions.

Managing Wetlands for Private and Social Good

Abstract: The management of natural resources located on private lands often involves a perceived conflict between the mix of private and public benefits they produce. This book is focused on one such issue: the design of policy relating to the production of wetland outputs in order to maximize private and social welfare.

Managing Wetlands for Private And Social Good: Theory, Policy And Cases from Australia

Abstract: Contents: 1. Managing Wetlands for Private and Social Good 2. Market Failure, Government Failure and Wetland Protection 3. Wetland Values and Policy Alternatives 4. Case Study Wetland 5. The Private Values of Wetlands 6. Non-market Use Values of Wetland Resources 7. Non-use Values of Wetland Resources 8. Bio-economic Integration 9. Designing and Evaluating Wetland Management Policies 10. Conclusions References Index

Realising Environmental Demands in Water Markets

Abstract: To achieve Pareto efficiency through market allocation, property rights over resources must be comprehensively defined and defended. This ensures that the full range of benefits and costs arising from their use are assigned and enforced. Competition between those with interests in a resource ensures that allocation is to the highest marginal net value use (Kasper 1998). The difference between the marginal net values of a resource prior to and subsequent to market place reallocations is known as the gains from trade. These gains from trade provide a powerful rationale for society to ensure the definition and defence of property rights.

Private Sector Conservation Enterprises in Australia

Abstract: If markets for nature conservation services are to ensure an efficient supply, property rights need to be well defined, readily defended and tradeable. However, some of these services have ill defined property rights that are costly, if at all possible to defend. This limits the incentives for private sector entities to deliver nature conservation benefits and has provided a rationale for public sector provision. Private Sector Conservation Enterprises (PSCEs) have the potential to fill any gap between the public sector supply of nature conservation services and the public’s demand for them. This paper reports a two stage survey designed to determine whether or not PSCEs are active in Australia to fill this supply gap. The first questionnaire collected high-level information on conservation activities, scale of operation, revenue and expenditure. The follow-up questionnaire sought more detailed information on factors that either constrain or facilitate the work of PSCEs. The research shows that there is an active and substantial PSCE sector operating across all states and territories. Despite their private sector roots, most PSCEs in Australia receive a proportion of their revenue from government grants. However, these groups also creatively engage local communities in nature conservation and successfully leverage private sector funds.